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Vistara receives Rs20bn equity boost

Indian carrier VIstara has received a Rs20 billion ($273 million) equity injection from its two shareholders, Singapore Airlines and Tata Sons.

A filing dated 13 October with India's corporate affairs ministry shows that Tata made a Rs10.2 billion contribution to the carrier through subscribing to a new share issue, while SIA providing the remaining Rs9.8 blllion.

The capital boost, which was approved by the airline's board in September, maintains Tata's holding in Vistara at 51%, with SIA holding the balance.

Including the latest equity injection, local media reports claim that the two shareholders have invested Rs38 billion into the joint venture to date.

The additional funds are expected to go towards the carrier's fleet expansion, having previously signalled that it plans to lease 37 Airbus A320neo family aircraft that would be delivered between 2019 and 2020.

In July it also signed letters of intent to order 13 A320neos and six Boeing 787-9s.

“Vistara will use these aircraft to densify its domestic network and to support its international operations planned for later this year,” it said in July.

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